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HomeMy WebLinkAboutCRPS-07-068 - Lottery Bingo Regulations - Council Policy I-875Report To: Councillor B. Vrbanovic, Chair and Members of the Finance and Corporate Services Committee Date of Meeting: May 28, 2007 Submitted By: R. Gosse, Director of Legislated Services/City Clerk Prepared By: Patricia Harris, Manager of Licensing Wards} Involved: Date of Report: May 16, 2007 Report No.: CRPS-07-068 Subject: LOTTERY BINGO REGULATIONS -COUNCIL POLICY 1- 875 RECOMMENDATION: That City of Kitchener Council Policy I-875 be amended to reflect the recent changes to the Alcohol and Gaming Commission's Terms and Conditions for Bingo Lotteries, dated May 1, 2007. BACKGROUND: Provincial Regulations permit municipalities to add additional terms and conditions for lotteries that are operated in their municipality provided the municipality is aware that Provincial Terms and Conditions take priority. On May 1, 2007 the Alcohol and Gaming Commission of Ontario ~AGCO} introduced a new Bingo Lottery Revenue Model for bingo operators and charities in the Province. This revenue model is significantly different from the model that has been in place since 1993 and therefore, several amendments are required to the City's Council Policy I-875. REPORT: The new bingo revenue model has been designed to allow the bingo hall operator to retain a larger part of the revenue that is earned at the hall. All revenue earned at the hall, including bingo wagering, the sale of break open tickets, and the sale of souvenirs and concessions will be distributed with 55% going to the operator and 45% going to the hall charities. The hall operator is required to pay for all expenses required to operate the hall, which may include runners, bingo paper and concession stands. The charities are required to pay the municipal and provincial licence fees and pay the salary of the Hall Charity Association Administrator who is now required to be responsible for all paperwork involved in the operation of the bingo and monitoring all activities that take place in the bingo hall. It is the Province's hope that with other changes that have been made to the revenue model that the charities will not lose any of their current revenue. The most significant change involves the type of games permitted to be played and the prize board. There are no longer Provincial Games and Municipal Games. A bingo operator can now choose to play any number, and any type of games that have been approved by the AGCO. The only requirement is that no more than 70% of the bingo wagering can be given out in prizes. This requirement is being monitored by the AGCO at three month intervals and all enforcement of this requirement is being done by the AGCO. Therefore, all sections regarding breaches to the Provincial expense factors have been removed from the Council Policy. The new model requires the charities to take more responsibility for the management and conduct of the bingo and the AGCO has streamlined reporting requirements that will make it simpler to report both to the municipality and the AGCO. In February of 2007 the Liquor Licence Act was amended to allow for a pilot project that would permit bingo hall operators to apply for liquor licences. This is another major change to the regulations and is being monitored by the AGCO to determine if it is successful. Before a hall operator wishes to make application to the AGCO for a liquor licence they are required to first notify the municipality in advance of the application which will give the municipality the opportunity to comment to the AGCO. The operator must also provide a copy of the notification with the application to the AGCO. All other changes to Council Policy I-875 are considered minor in nature and brings the policy into compliance with the new Provincial Terms and Conditions. FINANCIAL IMPLICATIONS: None COMMUNICATIONS: The amended policy has been circulated to the Bingo Hall Associations. (MRS) PATRICIA HARRIS MANAGER OF LICENSING FINANCIAL IMPLICATIONS COMMUNICATIONS: (MRS) PATRICIA HARRIS MANAGER OF LICENSING COUNCIL POLICY RESOLUTION POLICY NUMBER: I-875 DATE: DECEMBER 13,1993 LAST AMENDED: SEPTEMBER 22, 2003 POLICY TYPE: LICENCE SUBJECT: LOTTERY -BINGO REGULATIONS POLICY CONTENT: That the following consolidated bingo regulations, in addition to Alcohol and Gaming Commission of Ontario terms and conditions under which bingo lottery licenses are Issued be: 1. Administrative Costs a) That a bingo lottery licence covering a series of bingos may be issued to any charitablelreligious organization for a period not to exceed four calendar months. The maximum number of bingo events any organization maybe licensed for shall not exceed 52 in any calendar year. b) The above is subject to the organization meeting the Terms and Conditions as set out by the Alcohol and Gaming Commission of Ontario, including the requirement with respect to the filing of any and all reports as may be required by the Lottery Licensing Officer within 30 days of the final event of the month. Failure to meet this requirement may result in the organization's licensing privileges being suspended for one licensing period. 2. Market Factors a) The maximum prizes to be awarded shall not exceed 70°0 of the total bingo wagering. This total will be determined by the Alcohol and Gaming Commission over a period of 3 months. b) All prizes to be awarded shall be in cash, cheque, merchandise or a combination of the two. c) No minimum time period will be required between bingo sessions. d) There will be no minimum or maximum on the number of games per session. e) Multiple sessions may be played in segregated areas within the same bingo hall provided all applicable Terms and Conditions are met and the organization is duly licensed. 3. Advertising and Promotion ..~~ a) That free bingo cards or discounts on the normal price of bingo cards shall not be given to any player. Licences will not be issued for the conduct of raffle lotteries or gaming devices at bingo games, except if the event is licensed as a bazaar. b) Price-cutting will not be permitted at any bingo lotteries operated within the City of Kitchener. The price of cards to be sold shall not be less than those that were in effect on May 1, 2007. c) All applications to manage and conduct a bingo lottery must be submitted to the municipality a minimum of 60 days before the next licensing period. d) All applications must be accompanied by a list of all games to be played, the value of the prizes to be awarded, the particular arrangement of numbers of symbols required to win the game, the prices of the cards to be sold at each game, and the name and address of the premises where the event is to be held. The application must also be accompanied by a Charitable Gaming Summary, Charitable Gaming Spreadsheet, Bingo Event Rules of Play and the House Rules. e) That upon receipt of a bingo lottery licence, all charitable/religious organizations shall not revise previously licensed game formats, prize payouts and card prices without formal authorization from the Licensing Authority of the City of Kitchener and the Alcohol and Gaming Commission of Ontario. At least 10 business days notification will be required in order to amend a licence. f) All promotional initiatives must meet the requirements as set by the Alcohol and Gaming Commission of Ontario and the funds used for these initiatives must be paid from the Marketing Account as set up by the Hall Charity Association. g) Advertising of prize monies, hall manner which may be misleading other charitable bingo operations. conditions, etc., shall not occur in a and which may reflect negatively on 4. That the Licensee shall ensure that no person directly involved in or responsible for the conduct of the bingo lottery event, or involved in the sale of bingo paper, or break open tickets as the case may be, shall purchase any bingo paper, break open tickets, or participate in the game which he or she is assisting to conduct. Without restricting the generality of the foregoing, this policy shall apply to the hall owner, lessee or manager, full or part-time concessions operator/manager and employees, bingo chairman, as well as to any other corporation director, official or employee involved in the operation and/or management of the said bingo hall; However, this policy is not intended to prohibit a member involved in the management or conduct of a bingo from playing bingo in the said hall on any day in which his/or organization is not conducting a bingo. 5. Not less than three active bona fide members of the licensed organization shall be in attendance at each bingo. See Section 1.4 of the Terms and Conditions from the Alcohol and Gaming Commission of Ontario. 6. The licensee shall on demand, make available to the Lottery Licensing Officer, or to such persons he or she may designate, all financial records, ledgers, vouchers and financial reports in connection with the operation of bingo. This may also include Books and Records related to monies derived from bingo-themed Lottery schemes conducted and managed by the Ontario Lottery and Gaming Corporation within the bingo hall, the use of proceeds from a Lottery and the Licensee's non-lottery accounts. 7. See Section 3 -Financial Management and Administration Books and Records and Reporting Requirements of the AGCD Terms and Conditions for the submitting of fiscal year end reports. 8. That Licensing staff be allowed to refuse to issue bingo licences if the required fiscal year end reports have not been filed with the Licence Office within 180 days (6 months) of a group's fiscal year end. 9. That any organization licensed to operate bingo in the City of Kitchener may have not more than $25,000.00 in their Lottery Trust Account at fiscal year end. This amount may be adjusted with permission from the Lottery Licensing Officer provided the organization is raising funds for a large project as approved by the Lottery Licensing Officer. 10. If a hall operator wishes to make application to the AGCD for a liquor licence, they must first notify the municipality in advance of the application which shall give the municipality the opportunity to comment to the AGCD and the operator must provide a copy of that notification with the application to the AGCD. 11. Criteria for Licensing That the following criteria apply to charities making application to the City of Kitchener for a Bingo Lottery Licence, namely: a) The group should have been in operation for at least one year so as to assure the municipality that it has some long term stability; b) Qualified organizations having a physical presence within the Regional Municipality of Waterloo and that utilize at least 75 °~o of the proceeds from bingo lotteries for a charitable purpose within the Region of Waterloo shall be approved for licensing. c) Membership should be no less than 25 in number to provide that the charity has sufficient members to meet an identified need in the community; d) The charity provide proof of financial responsibility in the amount of $2,500.00, and that this amount be maintained in the lottery trust account. e) Non-profit organizations which are not necessarily charitable in nature be required to describe to Council the charitable purposes for which proceeds from bingos are to be utilized. f) That organizations submit yearly copies of their budgets and membership lists which will include a list of their principal officers. Further, that failure to meet any of the above criteria shall not preclude any organization from appealing directly to City Council for approval to obtain a Bingo Lottery Licence.